The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies depending on your filing status:

* Married Filing Jointly $110,000

* Married Filing Separately $55,000

* All others $75,000

In addition, the Child Tax Credit is limited by the amount of the income tax you owe as well as any alternative minimum tax you owe. For example, if the amount of the credit you can claim is $1,000, but the amount of your income tax liability is $400, the credit ordinarily will be limited to $600. If the amount of credit you can claim is $1000, but the amount of your tax liability is $0, or you are expecting a refund, you cannot claim the Child Tax Credit. See below to see if you can claim the Additional Child Tax Credit through one of the "Exceptions".

Exceptions: There are two exceptions to this general rule. If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim some or all of the difference as Additional Child Tax Credit. Any Additional Child Tax Credit is also automatically calculated by TaxSlayer.

First, you may claim up to 15 percent of the amount by which your earned income exceeds $3,000 (15% of the result of: Your Earned Income - $3,000). For members of the Armed Forces who served in a combat zone, nontaxable combat pay counts as earned income when figuring this credit limit.

Second, if you have three or more qualifying children, you may claim up to the amount of Social Security taxes you paid during the year, minus any Earned Income Tax Credit you receive. If you qualify under both these exceptions, you receive the greater of the two amounts, up to the difference between your tax liability and your regular Child Tax Credit.